RN & Associates v TPX Builders: Setting Aside Adjudication Determination Under Security of Payment Act
In RN & Associates Pte Ltd v TPX Builders Pte Ltd, the High Court of Singapore dismissed an application by RN & Associates, the main contractor, to set aside an adjudication determination in favor of TPX Builders, the subcontractor, concerning a payment claim dispute under the Building and Construction Industry Security of Payment Act. The court, presided over by Andrew Ang J, held that the adjudicator had jurisdiction to determine the dispute, that RN & Associates was estopped from challenging the validity of the payment claim, and that there was no breach of natural justice in the adjudicator's refusal to admit supplementary documents. The judgment was delivered on 2012-11-07.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Application dismissed
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
RN & Associates' application to set aside an adjudication determination in favor of TPX Builders was dismissed. The court addressed the validity of payment claims and natural justice.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| RN & Associates Pte Ltd | Plaintiff | Corporation | Application dismissed | Lost | |
| TPX Builders Pte Ltd | Defendant | Corporation | Adjudication Determination upheld | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Andrew Ang | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Philip Ling | Wong Tan & Molly Lim LLC |
| Ang Hou Fu | Wong Tan & Molly Lim LLC |
| Looi Ming Ming | Eldan Law LLP |
4. Facts
- RN & Associates was the main contractor for a project at Nassim Road.
- TPX Builders was engaged as the subcontractor for the project for $3,271,360.
- The works were to be completed by 30 September 2009 but were delayed.
- A temporary occupation permit was obtained on 4 June 2010.
- TPX Builders submitted a payment claim for $996,899.08 on 31 January 2012.
- RN & Associates issued a payment response on 1 February 2012, refusing the claim.
- TPX Builders filed an adjudication application on 21 February 2012.
5. Formal Citations
- RN & Associates Pte Ltd v TPX Builders Pte Ltd, Originating Summons No 373 of 2012, [2012] SGHC 225
6. Timeline
| Date | Event |
|---|---|
| TPX Builders issued an offer to RN & Associates to carry out works. | |
| RN & Associates accepted TPX Builders' offer. | |
| Original completion date for the works under the contract. | |
| Temporary occupation permit obtained. | |
| Maintenance period under the main contract ended. | |
| TPX Builders issued a letter containing a final claim for payment. | |
| RN & Associates issued a payment response to TPX Builders. | |
| The dispute settlement period expired. | |
| TPX Builders filed its Adjudication Application with the Singapore Mediation Centre. | |
| Singapore Mediation Centre served the Adjudication Application on RN & Associates. | |
| RN & Associates filed its Adjudication Response. | |
| RN & Associates tendered a Supplementary Bundle of Documents. | |
| TPX Builders received the Supplementary Bundle of Documents. | |
| TPX Builders opposed the inclusion of the Supplementary Bundle of Documents. | |
| Adjudication conference held. | |
| Final submissions tendered. | |
| Adjudicator gave his Adjudication Determination. | |
| The matter came before the court. | |
| The matter came before the court. | |
| Court dismissed the application. |
7. Legal Issues
- Validity of Payment Claim
- Outcome: The court held that the validity of the payment claim was not a jurisdictional fact and that RN & Associates was estopped from raising the issue.
- Category: Jurisdictional
- Sub-Issues:
- Compliance with Section 10 of the SOP Act
- Timeliness of service
- Related Cases:
- [2010] 1 SLR 658
- [2010] 1 SLR 733
- [2010] 3 SLR 459
- [2011] SGHC 109
- [2004] 61 NSWLR 421
- Breach of Natural Justice
- Outcome: The court held that there was no breach of natural justice in the adjudicator's refusal to admit supplementary documents.
- Category: Procedural
- Sub-Issues:
- Refusal to admit supplementary documents
- Right to be heard
- Related Cases:
- [1987] 1 AC 625
8. Remedies Sought
- Setting aside of Adjudication Determination
9. Cause of Actions
- Payment Claim Dispute
10. Practice Areas
- Construction Litigation
- Commercial Litigation
- Adjudication
11. Industries
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Chip Hup Hup Kee Construction Pte Ltd v Ssangyong Engineering & Construction Co Ltd | High Court | Yes | [2010] 1 SLR 658 | Singapore | Discusses the source of an adjudicator's jurisdiction under the SOP Act and whether the validity of a payment claim is a jurisdictional fact. |
| SEF Construction Pte Ltd v Skoy Connected Pte Ltd | High Court | Yes | [2010] 1 SLR 733 | Singapore | Affirms that the validity of a payment claim under the SOP Act is a question for the adjudicator to decide. |
| Sungdo Engineering & Construction (S) Pte Ltd v Italcor Pte Ltd | High Court | Yes | [2010] 3 SLR 459 | Singapore | Argues that jurisdiction is affected by an invalid payment claim or service thereof. |
| Chua Say Eng (formerly trading as Weng Fatt Construction Engineering) v Lee Wee Lick Terence | High Court | Yes | [2011] SGHC 109 | Singapore | Endorses the opinion that jurisdiction is affected by an invalid payment claim or service thereof. |
| Brodyn Pty Ltd t/as Time Cost and Quality v Davenport & Another | New South Wales Court of Appeal | Yes | [2004] 61 NSWLR 421 | New South Wales | Lists essential conditions for the existence of an adjudicator's determination under the New South Wales Building and Construction Industry Security of Payment Act 1999, on which the SOP Act is based. |
| Ng Swee Lang v Sassoon Samuel Bernard | Court of Appeal | Yes | [2008] 2 SLR(R) 597 | Singapore | Clarifies the meaning of jurisdiction within the context of the Strata Title Board’s jurisdiction to hear a case on strata title. |
| Associated Provincial Picture Houses, Limited v Wednesbury Corporation | Court of Appeal | Yes | [1948] 1 KB 223 | England and Wales | Sets out the Wednesbury reasonableness test for judicial review. |
| Brookhollow Pty Ltd v R&R Consultants Pty Ltd & Anor | New South Wales Supreme Court | Yes | [2006] NSWSC 1 | New South Wales | Discusses the assertion that service of a payment claim is prohibited and the need to raise such a defense in a timeously served payment schedule. |
| Trysams Pty Ltd v Club Constructions (NSW) Pty Ltd | New South Wales Supreme Court | Yes | [2007] NSWSC 941 | New South Wales | States that the existence or otherwise of essential pre-conditions to a valid claim are matters for the adjudicator and are not for objective determination by the court. |
| Ng Swee Lang v Sassoon Samuel Bernard | High Court | Yes | [2008] 1 SLR(R) 522 | Singapore | States that the modern approach is to treat the question as one of statutory construction to be answered by looking at the whole scheme and purpose of the Act. |
| Chip Hup Hup Kee Construction Pte Ltd v Ssangyong Engineering & Construction Co Ltd | High Court | Yes | [2008] SGHC 159 | Singapore | States that natural justice requires that a respondent be given a fair opportunity to be heard. |
| Lloyd v McMahon | N/A | Yes | [1987] 1 AC 625 | N/A | Defines the concept of audi alteram partem. |
13. Applicable Rules
| Rule Name |
|---|
| Rules of Court (Cap 322, 2006 Rev Ed) O 95, r 3 |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) | Singapore |
| Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 2 | Singapore |
| Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 10 | Singapore |
| Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 11(1)(b) | Singapore |
| Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 12(3) | Singapore |
| Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 12(3)(b) | Singapore |
| Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 13(3)(a) | Singapore |
| Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 14(1) | Singapore |
| Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 15(1) | Singapore |
| Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 15(2) | Singapore |
| Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 15(3) | Singapore |
| Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 15(3)(a) | Singapore |
| Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 16(2) | Singapore |
| Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 16(2)(b) | Singapore |
| Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 16(3) | Singapore |
| Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 17(3) | Singapore |
| Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 17(3)(g) | Singapore |
| Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 17(4) | Singapore |
| Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 17(8) | Singapore |
| Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 18 | Singapore |
| Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 18(3) | Singapore |
| Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 18(5)(b) | Singapore |
| Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 30(2) | Singapore |
| Land Titles (Strata) Act (Cap 158, 1999 Rev Ed) s 84A(1) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Adjudication Determination
- Payment Claim
- Payment Response
- Supplementary Bundles
- Natural Justice
- Jurisdiction
- Security of Payment Act
- Construction Contract
- Adjudicator
- Set-off
- Counterclaim
15.2 Keywords
- Adjudication
- Security of Payment Act
- Construction
- Payment Claim
- Jurisdiction
- Natural Justice
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Building and Construction Industry Security of Payment Act | 80 |
| Construction Law | 75 |
| Contract Law | 60 |
| Arbitration | 40 |
| Civil Procedure | 30 |
16. Subjects
- Construction Dispute
- Adjudication
- Contract Law
- Civil Procedure